KUALA LUMPUR, Jan 16 (Bernama) -- Bank Islam Malaysia Bhd has teamed up with a local fintech company, Global Psytech Sdn Bhd to implement an innovative credit risk assessment solution to assist Micro, Small and Medium Enterprises (MSME) to obtain necessary financial assistance.
Bank Islam’s chief executive officer (CEO) Mohd Muazzam Mohamed said the programme, General Financial Insights (GFI), will estimate the risk of providing financing to an applicant, even in the absence of traditional credit history.
“It will allow a financial institution to finance with confidence to aspiring entrepreneurs who might otherwise be sidelined from the financial system, particularly those in the MSME sector,” he said in a statement today.
He added with the partnership in place, the GFI will accurately estimate the risks associated with financing, using behavioural analytics and machine learning algorithms.
“Within minutes, GFI automatically generates detailed reports that will help a financier decide whether to approve or reject an application. Following the implementation of this system, Bank Islam foresees an increase in approved financing applications, especially for MSME clients, as GFI will expedite and simplify current procedures,” he said.
Meanwhile, Global Psytech CEO Dr Haniza Yon said the company has leveraged its extensive experience in developing digital assessment solutions by offering a technologically advanced credit risk assessment system to benefit financiers as well as MSMEs.
“This method will allow financiers to provide appropriately-priced credit efficiently and securely to foster the growth of the entrepreneurship ecosystem in Malaysia,” she said.
Bank Islam Malaysia, Global Psytech, Mohd Muazzam Mohamed, General Financial Insights